Board Gender Diversity and Firm Financial Performance : A Study of 100 Companies Listed on Nasdaq Stockholm

Abstract: Background:           This thesis was written in context of the debate concerning gender equality and female representation on company boards. Gender quota legislation have been implemented by various countries on a national level, and a similar regulation was proposed by the European Commission. Legislation regarding board gender diversity have given rise to the discussion on the actual effects of female director’s on board effectiveness and firm financial performance.   Purpose:                  The aim of the study is to evaluate the relationship between gender diversity on boards and firm financial results. A sample of 100 Swedish companies listed on Nasdaq Stockholm for the time period 2013-2016 is analysed.    Method:                    The study had a quantitative approach and used a panel data methodology. The data analysis was conducted using Ordinary Least Square Regression. Board gender diversity was measured by four variables including the diversity measurements Blau and Shannon indices, and Tobin’s Q was deployed as the market-based measurement of financial performance.   Conclusion: The results of the data analysis indicate that the presence of one or more women has a positive effect on financial performance, which contradicts previous findings. Also, it is found that higher gender diversity on boards influenced firm performance positively, which conformed to the majority of the previous findings.